Required information [The following information applies to the questions displayed below.] At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Shipping costs (paid by Plummer) Renovation costs prior to use By the end of the first year, each machine had been operating 5,200 hours. Machine A B C 2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 ESTIMATES Life 6 years 61,000 hours 9 years Transaction a Residual Value Machine A Machine B Machine C $20,300 $29,100 $24,000 2,300 1,100 3,700 2,800 $1,700 2,500 2,500 View transaction list View journal entry worksheet Depreciation Method Straight-line Units-of-production Double-declining- balance General Journal 900 2,100 Depreciation expense Accumulated depreciation, Machine A Accumulated depreciation, Machine B Accumulated depreciation, Machine C Debit Credit 4,100 2,600 (×
Required information [The following information applies to the questions displayed below.] At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the accounts. Invoice price paid for asset Shipping costs (paid by Plummer) Renovation costs prior to use By the end of the first year, each machine had been operating 5,200 hours. Machine A B C 2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 ESTIMATES Life 6 years 61,000 hours 9 years Transaction a Residual Value Machine A Machine B Machine C $20,300 $29,100 $24,000 2,300 1,100 3,700 2,800 $1,700 2,500 2,500 View transaction list View journal entry worksheet Depreciation Method Straight-line Units-of-production Double-declining- balance General Journal 900 2,100 Depreciation expense Accumulated depreciation, Machine A Accumulated depreciation, Machine B Accumulated depreciation, Machine C Debit Credit 4,100 2,600 (×
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an
established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were
overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the
accounts.
Invoice price paid for asset
Shipping costs (paid by Plummer)
Renovation costs prior to use
By the end of the first year, each machine had been operating 5,200 hours.
Machine
A
B
C
2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in
the first account field.
No
1
ESTIMATES
Life
6 years
61,000 hours
9 years
Transaction
a
Residual Value
Machine A Machine B Machine C
$20,300
$29,100
$24,000
2,300
1,100
3,700
2,800
$1,700
2,500
2,500
View transaction list View journal entry worksheet
Depreciation Method
Straight-line
Units-of-production
Double-declining-
balance
General Journal
900
2,100
Depreciation expense
Accumulated depreciation, Machine A
Accumulated depreciation, Machine B
Accumulated depreciation, Machine C
Debit
Credit
4,100
2,600
(×](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85658ed7-206d-4ad9-8b80-28d8950e31e7%2F3094facf-a056-4cef-84cd-92b69ccdc5bb%2Faadp974_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an
established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were
overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the
accounts.
Invoice price paid for asset
Shipping costs (paid by Plummer)
Renovation costs prior to use
By the end of the first year, each machine had been operating 5,200 hours.
Machine
A
B
C
2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in
the first account field.
No
1
ESTIMATES
Life
6 years
61,000 hours
9 years
Transaction
a
Residual Value
Machine A Machine B Machine C
$20,300
$29,100
$24,000
2,300
1,100
3,700
2,800
$1,700
2,500
2,500
View transaction list View journal entry worksheet
Depreciation Method
Straight-line
Units-of-production
Double-declining-
balance
General Journal
900
2,100
Depreciation expense
Accumulated depreciation, Machine A
Accumulated depreciation, Machine B
Accumulated depreciation, Machine C
Debit
Credit
4,100
2,600
(×
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